Intel Corporation INTC He is reportedly in discussions with the Biden administration to receive more than $10 billion in subsidies.
This potential funding represents the largest allocation under a plan to revive semiconductor manufacturing in the United States, Bloomberg reported, citing people familiar with the matter.
The rewards package for Intel is expected to include loans and direct grants, the report said.
Discussions are ongoing, Bloomberg noted.
The incentives will come from the Chips and Science Act of 2022, which provided $39 billion in direct grants, along with $75 billion worth of loans and loan guarantees.
Its goal is to entice major semiconductor companies to make chips in the United States, marking a shift after years of manufacturing abroad, Bloomberg added.
The Commerce Department also unveiled two smaller Chips Act grants. Secretary Gina Raimondo indicated last week a series of larger announcements within the next six to 12 weeks.
Earlier this week, Intel made headlines amid reports of its plans to secure a minimum of $2 billion in equity capital to finance the construction of a semiconductor manufacturing plant in Ireland.
The major chipmaker, working with a financial advisor, has begun the process of engaging with potential investors, Bloomberg reported.
This fundraising effort comes on the heels of Intel’s 2022 deal with Brookfield Infrastructure Partners, which saw Brookfield commit up to $15 billion for a 49% stake in Intel’s manufacturing expansion at its Ocotillo campus in Chandler , Arizona.
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